LeoVegas acquires US-based product and technology assets from gaming service supplier Tipico.
MGM Resorts Declares LeoVegas' Acquisition of Tipico's US Operations as Major Breakthrough
In a media announcement on June 24, MGM Resorts revealed that its subsidiary, LeoVegas, purchased Tipico's American operations. According to MGM Resorts, this move is a substantial achievement for the company, paving the way for international sports betting expansion.
Tipico Prepares to Exit US Market
MGM Resorts officialized the acquisition in a communique cited on June 24 [English source]. LeoVegas now holds control of Tipico's product and tech platform, instrumental in powering their US sports betting and casino services.
MGM anticipates that the acquisition will enable it to establish a sophisticated sports betting operation across various global markets. However, the deal entails a caveat: MGM is barred from operating in markets where there exists a partnership between BETMGM and Entain.
Meanwhile, Tipico is planning to exit the US market pending the deal's finalization, despite launching a new venture in the US in February. Tipico is currently operational in Colorado, Iowa, New Jersey, and Ohio.
The acquisition will transfer Tipico's platform alongside its workforce - management, tech, trading teams in the US, Colombia, and Europe - to LeoVegas.
MGM is projecting the conclusion of the acquisition by the third quarter of this year. Both corporations have yet to comment on the financial data associated with the transaction.
MGM Hails Acquisition as Milestone
The press release released by MGM Resorts regards the acquisition of Tipico's US platform as a significant strategic milestone:
The acquisition of Tipico's revered US platform stands as a major milestone in the strategic progression of MGM Resorts' global digital gaming business, empowering us to operate an exclusive sports betting platform.– Gary Fritz, President, MGM Resorts International Interactive, MGM Resorts**
Fritz emphasizes that the acquisition of Tipico's product and technology platform enables MGM to have full authority over its technological infrastructure. Furthermore, he expresses enthusiasm about assimilating Tipico's US team into MGM, acknowledging their impressive track record of creating top-notch products and exhibiting strong pricing competencies.
Gustaf Hagman, LeoVegas CEO, also voiced optimism about LeoVegas providing the world's optimum iGaming experience with complete control over its sports betting technology.
Sale Occurs Days After Tipico's New CEO Introduction
The sale of Tipico's US product and technology platform took place under unusual circumstances, only a week after Axel Hefer was announced as Tipico's new CEO.
Hefer had previously served as Tipico's COO for a substantial period. His objective is to amplify Tipico's product excellence and technological leadership while enhancing its market dominance.
With the sale of its product and technology platform, Tipico is expected to withdraw from the US market within the upcoming months. The future will demonstrate how Tipico plans to expand its business and whether it considers venturing into new international markets.
Anticipated Growth for LeoVegas
The acquisition of Tipico's US product and technology platform is LeoVegas' most significant investment to date, following its acquisition of game developer Push Gaming last September to bolster its slot offering and content creation.
LeoVegas has also formed a partnership with Playtech, a globally renowned agency for the creation of innovative and secure gaming solutions. It remains to be seen how the acquisition of Tipico's product and technology platform will influence the future of LeoVegas.
In light of MGM Resorts' acquisition of Tipico's US operations, online casinos in Germany might be interested to know if this deal could potentially open up opportunities for partnerships or collaborations.
Furthermore, with LeoVegas now controlling Tipico's US online casino platform, German online casino enthusiasts who enjoy playing at international platforms may want to explore if this acquisition impacts the quality or variety of games available to them.
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